Typically that would mean something has changed the wallpaper or DeskScapes believes something has changed it.  What other applications are you running?

Build 309 of WB will trigger this in error on a skin apply, but build 310 resolves this after the first apply.

Hello, I have been running Deskscapes 3 now for a few days and I am having the same issue when I restart my PC. Deskscapes reverts to Existing Wallpaper Mode. I am using "Photo Dream" by Stardock as my wallpaper. Is there a workaround this issue?

Your computer has a Windows Experience Index base score of 5.9
Your Windows Graphics Experience score is 6.8

DeskScapes appears to be activated on this PC
DeskScapes engine appears to be running
(Generic PnP Monitor) 1 is attached to NVIDIA GeForce GTS 360M

Deskscape.dll               2011/01/18 17:32:56
Deskscapes.dll                2010/09/27 11:06:03
DreamControl32.dll              2009/11/09 17:10:17
DeskscapesConfig.exe               2011/06/08 16:34:39
UI\Deskscape.dll             2010/09/27 11:06:05
UI\DeskscapesVideo.dll      2009/10/24 13:04:54
DreamTasks.exe                2010/09/24 14:01:26
DeskscapesVideo.dll           2010/01/19 18:02:22

Well I have this builds. I am now having Deskscapes reverting back to default wallpaper mode again and i have not rebooted or apply any skin. This is really frustrating me. I want to use Deskscapes but is acting like crap on me.

Your computer has a Windows Experience Index base score of 5.9
Your Windows Graphics Experience score is 6.8

WindowBlinds version : WindowBlinds 7.3 (build 310 - Windows 7 Edition) - 64 bit OS

WindowBlinds is installed correctly on this PC
WindowBlinds appears to be activated on this PC
(Generic PnP Monitor) 1 is attached to NVIDIA GeForce GTS 360M

Wblind.dll      2011/10/17 11:18:20
Wblind64.dll      2011/10/17 11:18:48
Wbsrv.dll      2011/09/26 15:10:56
SevenConfig.exe      2011/10/13 17:33:52
Wbload.exe      2010/10/20 16:08:35
Wbhelp.dll      2011/10/04 10:01:37
Tray.dll           2009/10/23 20:12:19
Wbload.dll           2010/06/07 15:59:25
Screen.exe      2010/06/07 15:59:43

Your computer has a Windows Experience Index base score of 5.9
Your Windows Graphics Experience score is 6.8

DeskScapes appears to be activated on this PC
DeskScapes engine appears to be running
(Generic PnP Monitor) 1 is attached to NVIDIA GeForce GTS 360M

Deskscape.dll               2011/01/18 17:32:56
Deskscapes.dll                2010/09/27 11:06:03
DreamControl32.dll              2009/11/09 17:10:17
DeskscapesConfig.exe               2011/06/08 16:34:39
UI\Deskscape.dll             2010/09/27 11:06:05
UI\DeskscapesVideo.dll      2009/10/24 13:04:54
DreamTasks.exe                2010/09/24 14:01:26
DeskscapesVideo.dll           2010/01/19 18:02:22